15/10/2013 World Business Report


15/10/2013

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News. Now for the latest financial news with World Business Report.

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Share markets surge on signs of progress in Washington as the

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deadline to resolve the US debt crisis edges closer. And you can

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still count on us ` embattled smart phone maker Blackberry publishes an

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open letter to customers saying it has a future.

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Welcome to World Business Report. I'm Sally Bundock. Also in the

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programme our team in the US takes a look at what a debt default would

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mean for the millions of Americans reliant on social security spending.

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Markets have jumped over night on the back of the news that US senate

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leaders have made progress on a deal to reopen the government and avoid a

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breach of the country's debt limit. But time is running out fast. There

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are only two more days left before the US government loses its ability

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to borrow money to pay its bills. If lawmakers fail to stop the US

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government from defaulting on its debt, the impact on the markets

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would be enormous. Rico Hizon is at our Asia business hub with the

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latest. Nice to see you. Rico talk us through the trading day. Markets

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are betting US politicians will indeed a result of this ongoing

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gridlock. We are seeing stocks rebounding as a regional sentiment

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continues to mirror mood on Wall Street. They are clean to what

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senior US leaders are saying and that they are close to a deal,

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possibly averting a debt default. Overall, traders remain cautious

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until they see the final income. Shares are rising to the highest

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levels in nearly five months. Hong Kong shares a touching a three`week

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high. We also have some regional market closed due to holidays. So

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for now financial markets are betting US politicians will reach a

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deal before October the 17th. But for millions of Americans who

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receive benefits such as social security and Medicare government

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spending is their lifeline. Mariko Oi in New York takes a look at the

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impact a default would have on them. This woman has been receiving social

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security cheques since 2008 when she lost her job during the recession.

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It is my life sustaining income. I need it to live. I worked for 40

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years and worked very hard, putting into the system, and I rely on it to

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be there for me. Wendy is almost one of almost 58 million Americans who

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receive money through the social security system. The money they

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spend is a big boost to the economy. Continued `` contributes $1.3

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billion and can affect 9 million jobs. We know that the every $1 that

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a recipient gets, and other $2 is better fitted by individuals and

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businesses. Is this a time that we want to come back on an economic

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driver that is as strong as Social Security ` it isn't really the

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bedrock. If they stop spending money, it will affect the economic

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growth. If they fail to raise the debt ceiling, the US government will

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only be able to spend the government it gets from it tax revenue and that

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only covers two thirds of all the payments that it needs to make.

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Nobody knows exactly how big the impact will be on the economy. But

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for people like Wendy, the impact on her livelihood and her spending will

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be swift and damaging. Todd Buchholz is Former White House economic

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adviser and CEO of Sproglit a software company. You have worked in

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the White House, it gives us your take on this political deadlock

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because many in America feel they are taking it way too far? It is not

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unprecedented. In fact, you can go all the way back to the 1970s when

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President Richard Nixon was on the ropes and Senator Ted Kennedy and

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others challenged the debt ceiling vote and tried to revoke finance.

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When we tried to liberate Kuwait, they were debt ceiling debates. But

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the tension is high. The debt ceiling will not be breached, I

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think. I think a deal will be done by politicians on both sides want to

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take a pound of flesh from the other. Who will get the pound of

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flesh was back who will have to give up most stashed the Obama

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administration or the Republicans? Look at it this way, the Senate Rob

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Lee in the next day or so, will bravely and boldly decide to waive

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our decision till January. The deal will simply tell them that they will

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need to convene again and once again negotiate these in January. There is

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no talk right now a sincere long`lasting bring it on spending

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within the US. At this moment, it looks like the President and the

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Democratic party have the edge because of the Republican gambit did

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not work so well. The Republicans are not going to be able to dislodge

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President Obama from his healthcare plan which some of them had hoped to

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do. In the meantime, you are an economist, what damage is this doing

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to American businesses and the economy? The economy is at a low

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from the beginning of the fall. In September, things looked weaker than

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three months before. It is taking a toll on the confidence in the

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market. That means this needs to be resolved soon or else it could start

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affecting businesses if they decide that spending will affect the

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Christmas season. If we are going to avoid a recession, it is important

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to get the deal done pretty sad. Thank you for your time and

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perspective. `` pretty soon. We will continue to cover that story.

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Embattled smartphone maker Blackberry is publishing an open

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letter to reassure customers about its future. The letter ` which

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appears in more than 30 daily newspapers in nine countries `

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admits the firm is facing challenging times but adds that it

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is taking measures to tackle them. It comes just days after research

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firm Gartner recommended customers should move to other technologies.

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Blackberry made a net loss of nearly $1 billion in the second quarter and

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has agreed to be bought by its biggest shareholder for $4.7

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billion. Larry Magid is a financial analyst for Cnet. Nice to see you

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again. What do you make of this latest move by BlackBerry? It

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strikes me as a type of desperation. They do have a lot of cash in the

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bank. I have no doubt that they will be around for the foreseeable future

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but the reason a worry that the new owners might break them up and sell

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the pieces. Anyone who has a big investment in hardware and

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services, it is a way to assure the current customers everything is game

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to be okay. It may stop customers from jumping ship but it will not

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encourage anybody to go out and buy a BlackBerry. What you think the

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future holds for BlackBerry ` it has a deal done with Fairfax that what

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will the future be will it survive? For the foreseeable future it will

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survive. But it not seem much grace. `` growth. It could be many

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years from now before it is no longer with us. Thank you very much.

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Let's show you the markets. Interestingly, do note that

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Singapore and India are closed today. I wanted to show you the

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close in the US. London and Paris will open in a couple of hours. The

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sentiment is positive right now because, of course, it is thought a

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deal may be done very soon. I will be back to look through the papers

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later. See you soon. New figures show the number of cases

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of kidney cancer in England has risen by more than 30% in the last

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ten years. Now, Public Health England is launching a new TV

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advertising campaign to try to persuade people to take the early

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signs of the disease more seriously, after research showed that many

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people are ignoring them. This is one of the television ads designed

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to raise awareness of kidney cancer. It is also an attempt to

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focus on one of the main symptoms. Blood in your your ride can be a

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sign of cancer. `` urine. The number of cases have gone up by 30% in an

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decade.

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